Introduction

1. Problem Statement
You are the Manager of a multiplex. Recently Jio has announced their First Day First
Show offer. This offer will allow subscribers to watch any movie on the day of its
release from the comfort of their home. This is a threat to your business. You have
been asked by the management to prepare a report and present the way forward to
them. Present your plan.

2. Current scenario
What is Jio First day first show
When is it getting released
3. Objective
Customer side
Producer side
Business implication

Producer

1. Reduced Profit

The producer of the film is the owner of the creative content, and is,
therefore, entitled to choose the platform for distribution and consumption
of his content.
Producers, distributors and multiplex owners in India have mutually agreed
to an exclusive theatrical window of eight weeks between the theatrical
release of a movie and release on any other platform.
In view of this mutually-agreed exclusive theatrical window, he (the
producer) would have to choose between theatrical exhibition or release on
any other platform, since release on both simultaneously would breach the
mutually-agreed exclusive theatrical window

In India, the average ticket price is Rs 150. Out of this, almost 40 per
cent travels back to the producer after taxes. So about Rs 60. This Rs
60 per person is the highest when you compare to the yield in
television, Over The Top (OTT) media, or any other platform,
therefore, from a producer's perspective, it makes sense to go to the
highest yield platform first before turning to other distribution
platforms.
 If you were to sell a film for Rs 50 crore to TV, crores of people watch
it. If you divide Rs 50 crore with the number of people watching the
film, the yield per eyeball will be much lower than Rs 60. It will be Rs
4-5, or even lower. OTT, similarly, is a much lower figure

2. Inability to measure the success

It is difficult to tell if consumers paid for a film or not. In theatres,

one pays per use, for a particular film. In terms of a barometer of
success, theatres are therefore much sharper and definite. The
success or failure in theatres currently leads to price discovery for
other platforms.

3)Reduced viewer base

Only jio customers will be able to watch the movies and not others.

Customer

1. Cost benefits with Jio

We cannot deny the fact that the jio is offering at a reduced price than any theatre. However
what we need to validate is the content that they are offering. Sharukh, Salman khan movies
will not be released.

2. Love for big screen in India

 Love for big screen is deep rooted in India and that can never change.
People just don’t come and watch movie. There’s a lot more involved in the
process:
People have fan clubs, First day first show usually these fan clubs celebrate
the release of the movie by putting garlands etc and Theaters are the place
where they come together.

3. Ambience and experience

Ambience is a main factoer which one of the reasons why people prefer to go to the movie
theatres. When you enter a movie theatre you are disconnected with the outside world and
your completely involved in the movie.

4. 4d Experience
5. Other disturbances like power cuts
Business

There are certain things that can be changed in the current process:

1. Free Parking

Rational people think at the margin. It’s not the 200 bucks that we pay for the movie that
bothers us, it is the 30-40 bucks that we pay for parking.
2. Reduced prices for eatables
We can also collaborate with swiggy, Zomato.
3. Pricing strategy for family
cinema hall is the prime hangout spot for family audiences. Special offers
can be given to attract the family people.
4. Expand our industry from movies to entertainment industry
We have to portray our multiplex in way that it is not just for watching movies but it is a
place where people come together. There are some things that people want to watch in
groups.
Eg: Cricket/ football finals, sacred games final episode

Conclusion

Is this a threat?

Movie industry in whole will benefit. Th actual competitors of jio are DTH and cable providers and
not multiplexes.

Having said that there are certain things that can be done to make sure customers don’t are happy
with the movie going experience.